PBOC's Gold Purchases Reach Three-Year High

The People's Bank of China (PBOC) has increased its gold reserves for the sixth consecutive month, with August purchases totaling 650,000 ounces, the largest monthly increase in nearly three years.

This marks a significant shift from previous years, when the PBOC's gold buying pace slowed. However, since March, the country has accelerated its purchases, with June and July increases totaling 480,000 and 640,000 ounces, respectively.

The valuation of China's gold reserves surged to $350.08 billion at the end of August, up from $306.35 billion in July. This increase is attributed not only to new purchases but also to rising gold prices, which jumped 9.7% in August, the largest monthly gain since January.

The World Gold Council reports that China accumulated approximately 60 metric tons of gold in the first seven months of 2026, ranking second among publicly reported central bank buyers. Analyst Rashad Hajiyev views the current softness in gold prices as a consolidation phase ahead of its next leg higher, with the $4,300 level serving as a key support line.